Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $74.5 million, with adjusted EBITDA of $19.3 million, reflecting a 1.5% increase year-over-year [17] - Adjusted EBITDA margin improved to 25.9%, an increase of 164 basis points compared to Q1 2024 [17] - Adjusted diluted EPS was reported at $0.24 [17] - Revenue excluding marketing funds decreased by 4.3% year-over-year, primarily due to a 3.2% decline in organic growth and 1.1% from adverse foreign currency movements [17] Business Line Data and Key Metrics Changes - The mortgage segment continues to face challenges, impacting revenue, with expectations for recovery taking several quarters [17] - Despite the decline in organic growth, higher broker fees partially offset the revenue decrease [17] - The company experienced a 10% growth in global agent count in Q1 2025 [10] Market Data and Key Metrics Changes - The real estate market remains uncertain, influenced by tariffs, rising inventory, and interest rate fluctuations [4] - The National Association of Realtors modified its clear cooperation policy, which aims to enhance flexibility for home sellers while maintaining transparency [4][5] Company Strategy and Development Direction - The company is focused on operational excellence, enhancing profitability, and strengthening its foundation through improved processes and products [3][6] - New initiatives include the Aspire onboarding program, aimed at attracting and developing top-producing agents, and the Max Engage social influencer platform [10][12] - The company is committed to modernizing its branding and expanding its product offerings to enhance competitive advantage [7][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the macroeconomic uncertainties but expresses confidence in the company's ability to adapt and succeed [4][6] - The outlook for Q2 2025 anticipates a 1.5% to 2.5% increase in agent count and revenue between $70 million and $75 million [21] - For the full year 2025, revenue is expected to range from $290 million to $310 million, with agent count projected to remain stable [21] Other Important Information - The company is undergoing a leadership transition, with Ward Morrison retiring after 20 years [23] - The company emphasizes the importance of transparency and fairness in real estate practices [5] Q&A Session Summary Question: Franchise sales line performance - Management noted that franchise sales were down due to the wind down of prior technology acquisitions and a slight decline in conference revenue [25][26] Question: Operational expenses management - Management confirmed ongoing discipline in operational expenses, with a focus on strategic spending and efficiency [32] Question: Aspire program's competitive positioning - The Aspire program is designed to enhance recruitment and onboarding, providing flexibility and support to agents and brokers [36][39] Question: International growth momentum - Management highlighted strong operators and brand recognition as key drivers of international growth, with plans for further marketing initiatives [70][72] Question: Market share trends in the U.S. - Management indicated that while the overall industry has contracted, REMAX's agent productivity remains higher than the industry average [77] Question: NAR's clear cooperation policy impact - The company supports transparency and broad distribution of listings, aligning with consumer interests while providing guidance to franchisees [80][82]

Core Insights - RE/MAX reported revenue of $74.47 million for the quarter ended March 2025, reflecting a year-over-year decline of 4.9% [1] - The company's EPS for the same period was $0.24, an increase from $0.20 a year ago, resulting in an EPS surprise of +33.33% compared to the consensus estimate of $0.18 [1] Revenue Breakdown - Marketing Funds fees amounted to $18.86 million, exceeding the two-analyst average estimate of $18.10 million, but showing a year-over-year decline of 6.6% [4] - Continuing franchise fees were reported at $29.35 million, slightly above the estimated $29.32 million, with a year-over-year decrease of 5.6% [4] - Franchise sales and other revenue totaled $7.03 million, below the average estimate of $7.99 million, marking a year-over-year decline of 12.7% [4] - Broker fees reached $11.43 million, surpassing the estimated $11.12 million, and showing a year-over-year increase of 6.7% [4] - Annual dues were reported at $7.79 million, slightly below the average estimate of $8.02 million, with a year-over-year decline of 5.3% [4] Stock Performance - Over the past month, RE/MAX shares have returned -8.7%, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

分组1 - RE/MAX reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, and showing an increase from $0.20 per share a year ago, resulting in an earnings surprise of 33.33% [1] - The company posted revenues of $74.47 million for the quarter ended March 2025, which was below the Zacks Consensus Estimate by 0.09%, and a decrease from $78.29 million year-over-year [2] - Over the last four quarters, RE/MAX has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] 分组2 - The stock has underperformed, losing about 28.3% since the beginning of the year compared to the S&P 500's decline of 5.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $76.22 million, and for the current fiscal year, it is $1.30 on revenues of $299.06 million [7] - The Zacks Industry Rank for Real Estate - Operations is currently in the bottom 40% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

Revenue Performance - Total revenue for Q1 2025 was $74.5 million, a decrease of 4.9% compared to Q1 2024[114] - Revenue excluding Marketing Funds decreased 4.3% to $55.6 million, driven by negative organic revenue growth of 3.2% and adverse foreign currency movements of 1.1%[114] - Continuing franchise fees decreased by 5.6% to $29.4 million, primarily due to a reduction in U.S. agent count[123] - Franchise sales in the U.S. and Canada decreased by 18.2% to 27[119] - Economic uncertainties and high interest rates have led to declines in the number of U.S. REMAX agents and total revenue[115] Income and Expenses - Net income attributable to RE/MAX Holdings, Inc. was a loss of $2.0 million, an improvement from a loss of $3.4 million in the prior year[114] - Total operating expenses for the three months ended March 31, 2025, were $69,100,000, a decrease of 6.3% from $73,763,000 in the same period of 2024[129] - Selling, operating, and administrative expenses decreased by $2,677,000, or 5.9%, from $45,705,000 in Q1 2024 to $43,028,000 in Q1 2025[130] - Adjusted EBITDA increased 1.5% to $19.3 million, with an Adjusted EBITDA margin of 25.9%, up 164 basis points from the prior year[117] - Adjusted EBITDA for the three months ended March 31, 2025, was $19,287,000, an increase of $294,000 from $18,993,000 in the comparable prior year period[138] - Interest expense decreased by $1,332,000, or 14.4%, from $9,256,000 in Q1 2024 to $7,924,000 in Q1 2025[134] - Total other expenses, net, decreased by $1,894,000, or 22.0%, from $8,627,000 in Q1 2024 to $6,733,000 in Q1 2025[134] - Personnel expenses decreased by $754,000, or 2.9%, from $25,832,000 in Q1 2024 to $25,078,000 in Q1 2025[130] - Depreciation and amortization expense decreased from $7,852,000 in Q1 2024 to $6,589,000 in Q1 2025, primarily due to lower franchise agreements amortization[131] Agent and Office Metrics - Total agent count increased by 2.0% to 146,126 agents, while U.S. and Canada combined agent count decreased by 5.0% to 75,010 agents[117] - The number of open Motto Mortgage offices decreased by 7.8% to 224 offices[117] Cash Flow and Capital Expenditures - Cash provided by operating activities decreased to $5.661 million for the three months ended March 31, 2025, compared to $9.381 million for the same period in 2024[160] - Total capital expenditures for the three months ended March 31, 2025, were $1.7 million, with expectations for 2025 to be between $6.0 million and $7.5 million[166] Debt and Financial Obligations - The Senior Secured Credit Facility includes a $460 million term loan and a $50 million revolving loan, with a repayment requirement of approximately $1.2 million per quarter[150] - As of December 31, 2024, no Excess Cash Flow payment was required because the Total Leverage Ratio was below 3.75:1[152] - As of March 31, 2025, RE/MAX, LLC's consolidated EBITDA was $97.8 million, with a Total Leverage Ratio (TLR) of 3.61:1[154] - The company had $442.8 million in term loans outstanding and no revolving loans under the Senior Secured Credit Facility as of March 31, 2025[158] - The interest rate on the term loan facility was 6.9% as of March 31, 2025, with a hypothetical 0.25% increase resulting in an additional annual interest expense of $1.1 million[180] Strategic Initiatives - The AspireSM program was launched to help brokerages attract new agents, with a performance-based financial model[116] - The company plans to pursue acquisitions of RE/MAX Independent Regions in the U.S. and Canada to access new markets and revenue streams[165] Shareholder Returns - The company suspended its quarterly dividend in Q4 2023 and did not approve any dividends for the first quarters of 2025 and 2024[168] - A common stock repurchase program of up to $100 million was authorized, with $62.5 million remaining available as of March 31, 2025[169] Bad Debt and Currency Impact - Bad debt expense for the three months ended March 31, 2025, was 2.1% of revenue, compared to 1.7% for the same period in 2024[177] - A hypothetical 5% strengthening/weakening of the U.S. dollar against the Canadian dollar would have impacted operating income by approximately $0.4 million[182]

Financial Performance - Total revenue for Q1 2025 was $74.5 million, a decrease of 4.9% compared to $78.3 million in Q1 2024[3] - Revenue excluding Marketing Funds decreased by 4.3% to $55.6 million, driven by negative 3.2% organic growth and 1.1% adverse foreign currency movements[5] - Net loss attributable to RE/MAX Holdings was $(2.0) million, with a loss per diluted share of $(0.10)[9] - Net income for Q1 2025 was a loss of $3.236 million, an improvement from a loss of $5.607 million in Q1 2024[40] - Adjusted net income increased to $7.549 million in Q1 2025, compared to $6.267 million in Q1 2024, reflecting a growth of 20.4%[40] EBITDA and Margins - Adjusted EBITDA increased by 1.5% to $19.3 million, with an adjusted EBITDA margin of 25.9%[10] - Adjusted EBITDA for Q1 2025 was $19.287 million, up from $18.993 million in Q1 2024, with an adjusted EBITDA margin of 25.9% compared to 24.3% in the prior year[36] - Adjusted free cash flow was negative at $(1.161) million in Q1 2025, compared to positive $4.543 million in Q1 2024[47] - Adjusted free cash flow as a percentage of Adjusted EBITDA was (6.0)% in Q1 2025, down from 23.9% in Q1 2024[47] Agent Count and Franchise Performance - Total agent count increased by 2.0% to 146,126 agents, while U.S. and Canada combined agent count decreased by 5.0% to 75,010 agents[4] - The agent count in the U.S. decreased to 49,854 as of March 31, 2025, down from 51,286 as of December 31, 2024, reflecting a decline of 2.8%[34] - Total open Motto Mortgage franchises decreased by 7.8% to 224 offices[3] Expenses and Liabilities - Total operating expenses decreased by 6.3% to $69.1 million, primarily due to lower selling, operating, and administrative expenses[7] - Total liabilities decreased to $626.914 million as of March 31, 2025, from $639.988 million at the end of 2024, a reduction of 2.0%[30] Cash Flow and Cash Position - Cash and cash equivalents as of March 31, 2025, were $89.1 million, a decrease of $7.5 million from December 31, 2024[13] - Cash flow from operations decreased to $5.661 million in Q1 2025, down from $9.381 million in Q1 2024[47] - The company reported a net cash provided by operating activities of $5.661 million for Q1 2025, down from $9.381 million in Q1 2024, a decline of 39.0%[32] - Cash and cash equivalents as of March 31, 2025, were $89.107 million, down from $96.619 million at the end of 2024, a decrease of 7.8%[30] Future Outlook - The company expects Q2 2025 revenue in the range of $70.0 million to $75.0 million and adjusted EBITDA in the range of $22.5 million to $25.5 million[17] - For the full year 2025, the company anticipates revenue between $290.0 million and $310.0 million, with adjusted EBITDA between $90.0 million and $100.0 million[17] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 19,292,210 in Q1 2025 from 18,481,848 in Q1 2024[28] - Total basic pro forma shares outstanding increased to 31,851,810 in Q1 2025 from 31,041,448 in Q1 2024[45] Other Financial Metrics - Operating income for Q1 2025 was $5.367 million, an increase of 18.7% from $4.524 million in Q1 2024[28] - The company incurred interest expense of $7.924 million in Q1 2025, down from $9.256 million in Q1 2024, a decrease of 14.4%[36] - The company incurred $619,000 in settlement and impairment charges during Q1 2025[40]

Core Insights - Don Kottick has been appointed as the President of RE/MAX Canada, bringing over 30 years of experience in the Canadian real estate industry [1][2][3] - Kottick's leadership is expected to strengthen RE/MAX's position as a market leader in Canada, where the brand has over 25,000 agents in more than 970 offices across all provinces and territories [2][3] - RE/MAX is focusing on innovation and technology to enhance services for its affiliates and maintain its market dominance [3][5] Company Overview - RE/MAX is recognized as the 1 name in real estate, with a global presence in over 110 countries and territories [5][6] - The company has more than 145,000 agents operating in nearly 9,000 offices worldwide, making it the largest real estate brand by residential transaction sides [6][7] - The brand was founded in 1973 and has cultivated an entrepreneurial culture that allows agents and franchisees significant operational independence [7][8] Leadership and Strategy - Kottick's previous roles include Executive Vice President of Corporate Development at Peerage Realty Partners and President of Right At Home Realty, showcasing a strong background in corporate development and brokerage management [4] - His appointment is seen as a strategic move to build on RE/MAX's existing momentum and success in the Canadian market [3][4] - The company aims to continue expanding its presence and enhancing agent productivity through innovative practices [4][5]

Core Insights - March home sales experienced a significant increase of 23.0% compared to February, marking the largest month-over-month increase since March 2023, although sales were down 1.4% compared to March 2024 [1][8] - Active inventory rose by 35.5% year-over-year across 50 metro areas surveyed, indicating a growing supply of homes available for sale [2][18] - The median sales price in March reached $435,000, which is an increase of $8,000 (1.8%) from February and $15,000 (3.5%) from March 2024 [4][12] Sales and Inventory - The number of homes for sale in March increased by 8.0% from February and was 35.5% higher than in March 2024, driven by a 29.8% increase in new listings compared to February [3][18] - Washington D.C. saw the largest month-over-month increase in active listings, rising 25.3% from February [5] - The overall number of home sales in March was down 1.4% compared to March 2024, despite the significant month-over-month increase [8] Pricing Trends - The median sales price of $435,000 in March 2025 reflects a year-over-year increase, with notable increases in markets such as Burlington, VT (+22.4%) and Trenton, NJ (+9.7%) [12][13] - Buyers paid an average of 99% of the asking price in March, consistent with previous months [9][14] Market Dynamics - The average days on market for homes sold in March was 44 days, a decrease from February but an increase from March 2024 [16] - The months' supply of inventory was 2.3, indicating a slight increase from the previous year but a decrease from February [18][19] - The close-to-list price ratio remained stable at 99%, with San Francisco having the highest ratio at 104.8% [14][15]

Core Insights - RE/MAX Holdings, Inc. announces the retirement of Motto Mortgage and wemlo President and CEO Ward Morrison, effective June 15, 2025, with Morrison remaining in a consultative role until the end of 2025 [1][4] Company Overview - RE/MAX Holdings, Inc. is a leading franchisor in the real estate industry, operating under the RE/MAX® brand globally and the Motto® Mortgage brand in the U.S. [6] - The company was founded in 1973 and has grown to over 145,000 agents in nearly 9,000 offices across more than 110 countries, making it the largest real estate sales organization in terms of total residential transaction sides [6] Leadership Transition - Morrison played a crucial role in the development and launch of Motto Mortgage in 2016, establishing a unique business model that supports entrepreneurs in building mortgage businesses [2][5] - Adam Sartin, Vice President of Franchise Growth & Development, will lead the Motto Mortgage and wemlo brands during the search for Morrison's successor [4] Morrison's Contributions - Morrison's leadership has significantly impacted the real estate and mortgage industries, and he expressed pride in the accomplishments of Motto Mortgage since its inception [5][6] - His decision to retire is influenced by personal reasons, including a focus on family and personal fulfillment [3][4]

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $72.5 million, with adjusted EBITDA of $23.3 million, reflecting an increase of almost 2% compared to Q4 of the previous year [28] - Adjusted EBITDA margin improved to 32.2%, an increase of 220 basis points over Q4 2023 [28] - Adjusted diluted EPS was reported at $0.30 [28] - Revenue excluding marketing funds decreased by 3.9% year-over-year, driven by negative organic growth of 3.5% and adverse foreign currency movements of 0.4% [28] Business Line Data and Key Metrics Changes - International agent count increased by almost 9% year-over-year, surpassing 70,000 agents outside the US and Canada for the first time [10] - In Canada, the agent count remained strong with over 25,000 agents, maintaining the brand's industry leadership [11] - The US experienced a decline in agent count typical at year-end, with efforts focused on enhancing the value proposition to stabilize and grow agent count [12] Market Data and Key Metrics Changes - The housing macro environment is described as being in a state of transition, influenced by inventory levels, interest rates, and government actions [8] - The Canadian market remains strong with a market share of approximately 28% [74] Company Strategy and Development Direction - The company aims to strengthen its existing business, develop new products and services, and explore growth opportunities [18] - A focus on operational efficiency and enhancing customer experience is emphasized as critical for future success [13][14] - New initiatives like Lead Concierge and RE/MAX Media Network are expected to contribute to revenue growth and improve customer experience [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the current housing market but sees opportunities for growth and resilience [9] - The company is optimistic about stabilizing US agent count and generating revenue from new initiatives [48] - The outlook for Q1 2025 anticipates a slight increase in agent count and revenue in the range of $71 million to $76 million [35] Other Important Information - The company has reached an agreement to settle two class action lawsuits in Canada for approximately $5.5 million [31] - The total leverage ratio increased slightly to 3.57:1 due to the settlement, but cash reserves are expected to grow, allowing for deleveraging in 2025 [34] Q&A Session Summary Question: Additional revenue opportunities from new initiatives - Management expressed optimism about new initiatives like Lead Concierge and RE/MAX Media Network, which are expected to drive revenue growth, although they may not match the scale of Motto [38][42] Question: Trends in broker commissions - Broker commissions have remained consistent throughout 2024, with the RE/MAX network adapting well to market conditions [50][52] Question: Cost management and savings opportunities - The company has focused on operational efficiency and cost management, with a goal to maintain a stable cost structure moving into 2025 [58][60] Question: US and international agent count trends - The US agent count has seen some attrition, while international agent count has grown significantly, driven by strong brand presence [72][75] Question: Update on Canadian litigation - The settlement of Canadian lawsuits is expected to remove uncertainty and is viewed positively for stakeholders [80] Question: R4 conference and upcoming changes - Management is preparing to announce new initiatives at the upcoming R4 conference, focusing on enhancing the value proposition for agents [84][88] Question: Buyback capacity and strategy - The company is considering stock buybacks as part of its capital allocation strategy, contingent on reducing leverage [100][102]

RE/MAX Holdings, Inc. Fourth Quarter and Full-Year 2024 Earnings February 21, 2025 Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by the use of words such as "believe," "intend," "expect," "estimate," "plan," "outlook," "project," "anticipate," "may," "will," "would" and other similar words and expression ...